Kempen Private Markets Fund QUARTERLY INVESTOR L ETTER AMSTERDAM, Q3 2019

DEAR PARTICIPANT,

The third quarter was a special quarter for the Private Markets Fund for three reasons: 1. The barrier of EUR 100 million has been broken. A total of EUR 103 million of capital has now been committed by clients. Based on the pledged capital, we have been able to build up a widely diversified portfolio of which 69% has already been invested. 2. We achieved a positive investment result of 3.7% in the third quarter; the fund is still under construction, but we are seeing a clear increase in revaluations and distributions that contribute positively to the result. 3. The third quarter was also a particularly active period for the fund, with three new partnerships added to the portfolio. Our current partners were also fully active and concluded various transactions that we will further elaborate on in this report.

PORTFOLIO ACTIVITIES AND FORECAST

We have added two partnerships within Venture Capital: Balderton and Northzone. If we look at the number of unicorns (start-ups valued at over $ 1 billion) in portfolios of Early Stage Venture Capital investors (series A and B), Balderton and Northzone are among the absolute top in Europe. With this successful track record, strong reputation, network, size and experience, Balderton and Northzone are strengthening their position in the ecosystem and they attract the most talented entrepreneurs of the next generation of start-ups. It is therefore not surprising that both funds have been overwritten. By participating in both funds, we spread our capital to two complementary top players. Moreover, Balderton has traditionally focused more on the UK and Northzone has its roots in Scandinavia. Balderton was originally the European arm of the successful and renowned US Benchmark Capital. We participate in Balderton’s 7th fund generation, consisting of an experienced and broad group of partners. Balderton is known for, among other things, successful investments in Revolut, The Hut Group and GoCardless. Northzone is originally a Scandinavian Venture Capital investor that has grown to be a pan-European player with offices in Stockholm, London, Berlin and New York. We participate in their 9th fund generation. Examples of successful investments of previous funds are Spotify, Trustpilot and iZettle.

The Private Markets Fund has completed its first secondary transaction by acquiring an interest in the Folium Agriculture Fund I. A secondary transaction involves taking over an interest from a current investor. Folium Capital was set up in 2015 by partners who were previously responsible for Natural Resources investments at Harvard Management Company. We were able to acquire the position at a small discount on the NAV. The timing of the transaction is favourable as we enter at a time when a significant part of the development period is already behind us. The portfolio offers exposure to permanent crops in Chili (50%), Australia, Portugal, Spain and the US, with almonds and avocados as the dominant crops. With an investment in such permanent crops, it’s possible to respond to health trends that are responsible for strong growth in the demand for these crops.

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Finally, we further expanded our allocation to GSA Coral in Q3. GSA Coral is one of the global market leaders in the student housing real-estate niche segment. GSA is active in Europe and Asia and focuses on both more mature and growing markets for student-housing investments.

We closed the third quarter with a positive return of 3.7%. This brings the year-to-date return for the fund to 3.9%. Investments in Infrastructure, Land and Real Estate contributed positively to the return this year. The private-equity partnerships are still in an accrual phase: the costs are based on the benefits (the so-called ‘J-curve effect’) and the underlying portfolio companies are still kept at cost price in the first year. In addition, fluctuations in the exchange rates had a variable effect on the return over the past three quarters: on balance, the effect was slightly positive. In general, we see that the underlying investments are developing positively over the entire portfolio and we assume that this will result in a positive medium-term return development.

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€ 123 MILLION COMMITTED CAPITAL PER 30 SEPTEMBER 2019

Source: Kempen Capital Management, per 30 September 2019

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MOST IMPORTANT DEVELOPMENTS IN THE PORTFOLIO Forbion (Forbion Capital Fund IV) completed one new investment in Achilles Therapeutics, a company that develops a cancer drug. The portfolio now consists of six investments. Balderton (Balderton VII) completed the first two investments in its new fund: Gitguardian is a cyber- security start-up that assists in detecting data leaks and protecting software codes. Toucan Toco is a B2B-software start-up that offers data visualisation solutions. Northzone (Northzone IX) completed the first three investments in its new fund. Spacemaker develops software for architects and project developers. Pollen is a platform that offers influencer word-of- mouth advertising. And Livepeer offers open-source video services. Ciclad (Ciclad VI) invested in FrogPubs: a French chain of English pubs that brews its own quality beer. Ciclad has now completed ten investments and 50% of the committed capital has already been called up and invested. Steadfast (Steadfast Capital Fund IV) completed two investments we already announced in the previous quarter. This concerns Koop Wasserbau, a Dutch/German company active in groundwater technology, and BUK, a production company specialised in plastic precision parts. Steadfast has now completed five investments. WestBridge (WestBridge SME Fund II) has completed no new investments in the third quarter. We do see a well-filled pipeline and good traction at the three portfolio companies WestBridge invested in. AJM Healthcare (Direct Co-investment) won additional long-term contracts that will contribute positively to sales and profit growth. We have also appointed an independent chairman at AJM together with our British investment partner. J.P. Morgan (J.P. Morgan Infrastructure Investments Fund) has further expanded positions in Ventient Energy and Koole Terminals. On the other hand, J.P. Morgan is trying to reduce positions in regulated infrastructure in the UK, part of the interest in Electricity North West has already been sold. AMP (AMP Global Infrastructure Fund II) has completed an investment in a cloud storage company in the US, Expedient. In addition, the underlying portfolio of companies performed very well, which has already led to a very positive return. Project Bäckhammar (direct co-investment) is going according to plan, the (ground) works are in full swing. Craigmore (Craigmore Permanent Crop Partnership) added four small kiwi orchards to the portfolio and was also busy with the development of apple and kiwi orchards. RMS (RMS Evergreen US Forestland Fund) performed operationally above budget, but saw the assessed values remain virtually unchanged this period. Clarion Gables (Clarion Gables Multifamily Trust) recorded stable distributions and capital revaluations for the past quarter. GSA (GSA Coral) is working on the delivery of six new student complexes in respectively Dublin, Barcelona and Bournemouth. The goal of GSA is to let as many of beds for the new semester.

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FORBION

The Private Markets Fund has subscribed to Forbion Capital Partners Fund IV. Forbion started KARAKTERISTIEKEN in 2006 as an independent venture capital company, as a spin-out from ABN-AMRO Lifesciences. It’s one of the most experienced life science GPs in Europe.

GP Forbion Capital Partners Fund IV Forbion focuses primarily on Europe. While most investments are expected to be made in the Structure Closed-end Netherlands, Germany and the UK, Forbion also has some assets in North America. The Focus Venture capital - life sciences company operates from two offices in Naarden and Munich. There is also a representation in

Fund size EUR 360 m Boston (via a venture partner). Most members of the core team have been with the company since its start in 2006. We believe that Forbion is one of the few GPs with a serious franchise More info www.forbion.com in pan-European life sciences, combining a good academic network with a good financial network, also in the US.

Update Q3 In the third quarter, Forbion completed the previously announced investment in AM Pharma. In addition, Forbion secured a sixth investment.

Forbion participated in a series B financing round in Achilles Therapeutics, a company based in Stevenage (United Kingdom) that focuses on the development of a new cancer drug based on TIL therapy, a form of immunotherapy. The investment is used to further expand the team and to further finance the development process, focusing primarily on skin and lung cancer.

Next to this new investment, additional tranches were invested in the current portfolio companies Inflazome and Dyne Therapeutics.

Forbion still sees a well-filled pipeline of investment opportunities. The fund ultimately intends to invest in around fifteen companies.

Achilles Therapeutics, Stevenage, VK. Drug development against cancer based on TIL immunotherapy

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BALDERTON

The Private Markets Fund has subscribed to Balderton Capital Fund VII. Balderton was CHARACTERISTICS founded in 2000 as the European branch of Benchmark Capital, a renowned venture capital partnership from the US. In 2007 the European partners went their own way under the name

GP Balderton VII Balderton and now they are investing from the seventh fund generation. Balderton focuses primarily on series A financing rounds and reserves additional capital to participate in follow- Structure Closed-end on rounds of the most successful investments in the portfolio. Focus Venture capital - technology

Fund size USD 400 m Balderton has become an absolute top player within the European venture capital ecosystem

More info www.balderton.com and it has a large number of successful exits, including IPOs and sales to strategic buyers. Balderton participated at an early stage in start-ups that have grown into unicorns: companies with a current valuation of $ 1 billion or more. Examples of successful companies from previous funds include Talend, The Hut Group, Carwow, GoCardless, Mimiro and Revolut.

Update Q3 Balderton held its first closing in the third quarter and immediately announced two series A lead investment rounds. Both investments are start-ups in France. Balderton ultimately pursues a broadly diversified portfolio of around 25 investments in Europe.

Toucan Toco is a SaaS (Software as a Service) business that visualises data. It’s founded in 2014, now has 70 employees and 100 clients including many French blue-chip companies Balderton and management aim for further international expansion injecting capital.

GitGuardian is a cyber security start-up founded in 2017. This company offers solutions for other companies to protect programming code and data. The number of software developers sharing open source code on GitHub is growing worldwide (>30 m). This entails new security challenges GitGuardian offers solutions for.

Toucon Toco: B2B visualisation software, Paris GitGuardian: cyber-security software, Paris

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NORTHZONE

The Private Markets Fund has subscribed to Northzone IX. Northzone is one of the first venture CHARACTERISTICS capital investment companies in Europa. For the first five fund generations, Northzone was primarily focused on Scandinavia. From the sixth fund generation onwards, Northzone

GP Northzone IX expanded its operations by opening offices in London and New York and a representation in Berlin. Northzone focuses primarily on series A & B financing rounds and reserves additional Structure Closed-end capital to participate in follow-on rounds of the most successful investments in the portfolio. Focus Venture capital - technology

Fund size EUR 450 m Northzone has become an absolute top player in the European venture capital ecosystem

More info www.northzone.com and it has a large number of successful exits, including IPOs and sales to strategic buyers. It participated at an early stage in start-ups that have grown into unicorns: companies valued over $ 1 billion. Examples of successful companies from previous funds include Spotify, Avito, iZettle, Trustpilot, Kahoot, MarketInvoice, NAKD and Fubo TV.

Update Q3 Northzone held a first closing in Q3 and immediately announced three series-A lead investment rounds. Pollen (Verve Street Team Software) is an English start-up that offers influencer marketing services for the entertainment industry in particular (travel, concerts and events, et cetera). Consumers can receive rewards for successfully promoting a product. Pollen mainly offers unique access to generation Z (16 - 28 years) that is less accessible through traditional media and generally less loyal to A-brands. Northzone has come on board to help Pollen with expansion to other sectors as well as other regions. Spacemaker is a Norwegian start-up that offers AI software for architects, city planners and project developers. The software gains to get insights and optimise the design on parameters such as the environment, sound, light, use of space and regulations. Northzone aims to help Spacemaker to become the global industry standard. Livepeer is an American start-up that offers an open source software platform as a service, where users can make, edit and stream videos. The platform is offered decentralised on a blockchain and responds to the increasing need for lower costs (versus cloud services), decentralisation and scalability. Northzone’s experience with disruptive media investments ensured that they were selected as a lead investor by the founders of Livepeer.

Pollen, influencer marketing, London Spacemaker, AI software project development, Oslo

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CICLAD

The Private Markets Fund has subscribed to Ciclad VI. Ciclad is a French private-equity CHARACTERISTICS company that focuses on the small to lower middle segment of the French buyout market. It was founded in 1988 as one of the first private-equity companies in France and currently GP Ciclad VI operates from two offices, in Paris and in Lyon. Ciclad has set up and managed five funds Structure Closed-end since 1988 and the fundraising for number six (Ciclad VI) has recently been successfully Focus Small buyouts in France completed. All Ciclad funds follow the same strategy and approach. Fund size EUR 180 m Update Q3 More info www.ciclad.com In the third quarter of 2019 Ciclad has made an additional investment, bringing the total to ten. We will discuss the most important portfolio activities below.

Ciclad invested in the company FrogPubs, in which it has taken a very significant majority stake. In addition to Ciclad, the original founder has also invested a substantial part of his sales revenue in the company. FrogPubs is a chain of ten English pubs, eight of which are located in Paris and two in Toulouse and Bordeaux. What makes this chain special is that it brews its own beer, with many of these beers winning prizes at international competitions. The investment idea of Ciclad for FrogPubs is threefold. First of all, the business activities with a low contribution to the margin will be looked at critically. In addition, Ciclad will clearly focus on the core activities that generate strong and recurring cash flows. Finally, it will try to stimulate the organic growth by increasing sales to large supermarket chains.

As a result of these investments, Ciclad has now invested around 50% of the total fund commitment. We think this is very positive. We visited Ciclad in Paris again at the end of September and also discussed the current portfolio and the pipeline. Both look very good in our opinion.

FrogPubs, Paris L’Ebénoïd, lightning

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STEADFAST

The Private Markets Fund has subscribed to Steadfast Capital IV. Steadfast is a Frankfurt- CHARACTERISTICS based lower mid-market buyout GP focused on the DACH market (Germany, Austria and Switzerland). Steadfast is founded in 2001. Through this investment, the Private Markets Fund GP Steadfast Capital IV aims to gain access to the large German SME market (Kleine und Mittlere Unternehmungen, Structure Closed-end KMU). The DACH market contains more than 60,000 small and medium-sized businesses. Focus DACH lower mid-market Many entrepreneurs and family businesses are now opening their doors to private-equity buyout capital, due to succession issues or because they have the intention to grow internationally Fund size EUR 300 m with a professional partner. More info www.steadfastcapital.de

Update Q3 Steadfast completed its fourth and fifth investment in the third quarter: BUK Beteiligungen and Koop Group.

BUK Beteiligungen is a manufacturer of high-quality complex plastic parts, moulds and tools for a wide variety of end applications, ranging from electronic parts to medical devices and bathroom fixtures. BUK was founded in 1985 and has its headquarters in Eppingen, Baden-Württemberg. Steadfast aims to further professionalise the company and improve its sales strategy. It also keeps the possibility open for a few smaller acquisitions.

Koop Group offers services in groundwater technology, drainage and groundwater treatment solutions. The Ko-Mats division also manufactures high-quality hardwood dragline bulkheads (‘road preparation’) for crane trucks. The Koop Group headquarters is situated in Gildenhaus, Germany, and the company operates from six locations in Lower Saxony, North Rhine-Westphalia and the central- eastern region of the Netherlands. Koop was founded in 1969 and has around 140 employees. Steadfast aims for further expansion in Europe by, among other things, making selective acquisitions.

Wilvo Group recently received the prestigious ASML Recognition Award 2019 in the presence of 140 suppliers of ASML.

Koop Group BUK Beteiligungen

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WESTBRIDGE

CHARACTERISTICS The Private Markets Fund subscribed to the WestBridge SME fund II. WestBridge was founded in 2008 by four highly experienced founding partners with an average of 27 years of experience in private equity. It has a team of ten investment professionals. We believe that GP WestBridge Capital SME Fund II WestBridge, with its focus on the British market for small buyouts, is well-positioned. The Structure Closed-end for 10 years enterprise size to which it is targeted is relatively small, usually GBP 15 to 20 million enterprise Focus Smaller buy-outs in the UK value. We find this an attractive market with a large pond of tens of thousands of companies,

Fund size GBP 100 m in which only a handful of private-equity GPs fish. The average entry-level multiple that WestBridge pays for companies is still attractive compared to mid-market deal valuations. More info www.westbridgecapital.co.uk WestBridge focuses on investments in niche players with demonstrable growth opportunities.

Update Q3 WestBridge has not completed any new investments in this quarter, but with the current portfolio of three investments WestBridge is on the right track. Given the short-term investment period, all three investments are developing well beyond expectations.

AJM Healthcare is a wheelchair company with several new long-term contracts. It works on further geographic expansion. See the next page for more details.

APEM is an environmental consultancy that focuses on ecological consultancy for water and energy companies, governments and regulatory bodies. APEM has had a good first half year. Since the company is acquired, the order book has grown from € 5.5 million to € 9.5 million, thanks to several new contracts that have been won. Business is also going well in the US. As a result, the company is doing considerably better than last year and it’s performing above budget. Together with our investment partner WestBridge, we have appointed a chairman with 30 years of experience who will put more focus on commerce. We have also appointed a CFO to professionalise financial reporting and IT systems.

Wilcomatic Wash Systems is the UK market leader in the design and manufacturing of integrated machines and equipment for carwashes. WestBridge seeks to transform the focus of the company one- off machine sales to an annuity-based business model supported by long-term service contracts. The first 5-year contract with a leading British supermarket has now been accomplished.

APEM does ecological research Wilcomatic manufactures car wash machines

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AJM HEALTHCARE

The Private Markets Fund has taken a direct interest in the UK healthcare services company KARAKTERISTIEKEN AJM Healthcare Limited. This participation is a co-investment with our British investment partner WestBridge Capital. In this management buyout, the management team of AJM

Company AJM Healthcare Limited together with (and thanks to) WestBridge Capital and the Private Markets Fund has acquired a significant interest in the own organisation. AJM Healthcare is a British supplier of GP WestBridge Capital maintenance, service and equipment for wheelchairs, temporary hospital beds, bed hoists, et Structure Direct deal (co-investment) cetera, with a focus on services such as logistics, maintenance and repair. Thanks to AJM’s Focus Healthcare in the UK aids and services, patients and people in need can stay at home longer independently, Fund size App. GBP 20 m instead of having to rely on care providers or hospitals. AJM works with fixed long-term contracts with strong counterparties, such as the British National Health Service (NHS) and More info www.ajmhealthcare.com local British hospitals. Positive trends, such as an aging population and the growing need of people to stay at home longer independently, ensure a positive but also stable expected profit development.

Update Q3 Since we acquired a majority stake in the company together with WestBridge, AJM has won five new long-term contracts for wheelchair services. All these contracts now contribute to a significantly higher turnover and profit development. The new business is mainly generated in the Midlands region. This is a region where AJM has not been active before, and the goal is to further expand in this region, building on these new contracts. The pipeline is well-filled for the rest of the year. A small setback is the fact that material costs have risen somewhat on the purchasing side. In the next period, AJM will focus more on the reuse of materials and refurbish used wheelchairs.

The original founder of AJM has resigned and his successor is the current operational director Steve Peck. Together with WestBridge we have appointed Andrew Dun as an independent chairman. Dun has gained a lot of experience at various companies in the British healthcare market. He will assist the management team with advice and act as a sounding board for strategic issues. We expect the impact of Brexit on the profit of this company to be limited. The exchange rate of the British Pound, however, does have a direct impact on the interim valuation of AJM in Euros. The British Pound hasn’t changed much against the Euro in the third quarter.

AJM Healthcare works for hospitals on a contract basis and delivers and repairs wheelchairs (amongst other things)

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J.P. MORGAN CHARACTERISTICS The Private Markets Fund has subscribed to the J.P. Morgan Infrastructure Investments Fund. The fund is managed by a large, specialised infrastructure team that operates from two GP J.P. Morgan Infrastructure locations: London and New York. Investments Fund (IIF) Structure Open-end The J.P. Morgan fund is one of the largest global core-plus funds in the market with a track Focus Core+ OECD countries record since 2007. As this is an open-end fund, the invested capital is immediately put to work Fund size USD 25.6 billion GAV in the current globally spread portfolio of infrastructure assets. USD 12.2 billion NAV

More info https://am.jpmorgan.com Update Q3 In October we attended the annual meeting of J.P. Morgan in Toronto. A recurring theme was the increased attention for ESG (Environmental Social and Governance) themes.

J.P. Morgan aims to further reduce its interests in the regulated sector in the UK. For example, the position in Electricity North West (ENW) has been halved. ENW has delivered a 12.5% return since the start. The allocation to the regulated market is only a quarter (lowest percentage since the start).

J.P. Morgan has more faith in the contracted markets. In the past quarter, for example, the position in renewable energy has been substantially expanded in wind farms in Germany, Spain and France (Ventient Energy). Also, the team was able to buy the shares of Koole (the storage terminals in the Rotterdam ports) that it didn’t possess yet. The latter also has to do with the pursuit of a higher and preferably 100% interest in the underlying companies.

More generally, we see the cash flows from the IIF portfolio remain high and stable. For this year, a cash flow of 6.5% at an operational level is expected for all companies together. All companies (except for the regulated utilities in the UK) show double-digit returns this year. But J.P. Morgan also shows that operational economic risks are increasing worldwide. It’s important for the team and all its directors at a corporate level to reduce and mitigate the risks as much as possible.

Ventient Energy, Germany Koole Terminals, Rotterdam

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AMP CAPITAL

The Private Markets Fund has subscribed to AMP Capital Global Infrastructure Fund II. AMP CHARACTERISTICS Capital is one of the largest infrastructure investors in the world. With more than 30 years of experience in this field, AMP is considered a pioneer in the field of unlisted infrastructure GP AMP GIF II objects. With over thirty highly experienced professionals, the infrastructure team based in Structure Closed-end London and New York is seen as one of the largest and most experienced in the sector. AMP Focus Value-Add Infrastructure strives to add extra value through active asset management. Fund size USD 3 billion target Update Q3 More info www.ampcapital.com Just after the close of the third quarter, the fund announced a sixth investment: for USD 250 million, a US-based digital data storage company (cloud and co-location services) was acquired. The company, Expedient, serves 1200 customers in 11 cities including Boston, Baltimore, Memphis, Indianapolis, Cleveland, Phoenix. This is a typical platform growth company with which AMP can achieve a high return through acquisitions and autonomous growth. There are also great synergies with Everstream, the American cable operator.

In the meantime, revaluations have taken place at the current four companies, already resulting in a very positive return (the fund is still in a development phase). These good results are mainly driven by a huge upgrade in Everstream, which is mainly driven by the profit from a large contract with T-Mobile, which wasn’t included in the original budget. An additional EUR 200 million of capital has now been allocated to Everstream for growth and acquisitions.

The other three companies also performing as expected (Luton) or even better than that (Regard and Invenergy Clean Power). Luton’s concession renewal (see previous quarterly reports) is going according to plan and Invenergy is completing its Nelson capacity expansion (34 MW) faster than expected.

With the purchase of Expedient, 56% of the capital (USD 1.8 billion) has now been put to work. Two more closings are likely to take place in Q4 of this year and in Q1 of next year to bring the fund size to EUR 3 billion. This may cause a slight dilution of the fund return.

Expedient, cloud solutions, US Everstream, fibre-optic cables, US

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WINDPARK BÄCKHAMMAR

CHARACTERISTICS The Private Markets Fund has completed a direct investment in a wind farm in Sweden. The new wind farm is being built in Bäckhammar, close to Lake Vänerm, the largest lake of Sweden. It’s expected to be ready in two years. Company Windpark Bäckhammar

GP KGAL Investment Management The park has a capacity of 130 megawatts, generated by 31 turbines up to 200 meters high. Structure Direct deal (co-investment) The investment of the Kempen Private Markets Fund is a co-investment with KGAL ESPF 4, a Focus Sustainable energy pan-European sustainable energy fund. This fund is advised by KGAL Investment

Fund size Not applicable yet Management, a German renewable energy and real-assets specialist with one of the largest green-energy investment teams in Europe. More info www.kgal.de

Update Q3 Financially and contractually, the project is going according to plan. Now, the completion of the roads and the foundations of the wind turbines are next. This phase is expected to be ready in November.

The underground work, the cabling between the turbines and to the ‘Sjohammaren’ electricity station, is also going according to plan. And this cannot be taken for granted, given the rubble with gigantic boulders through which the trenches must be dug to draw the cables.

Meanwhile, Vestas has also come to the site to prepare and carry out inspections. The final wind turbines are expected in Q1 or Q2 of 2020.

The expectation remains that in August 2020, the project will be ready and the turbines can rotate.

Preparations project Bäckhammar, delivery of the Preparation project Bäckhammar, building the foundation E3 in North foundation

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CRAIGMORE

The Private Markets Fund subscribed to the Craigmore Permanent Crop Limited Partnership. CHARACTERISTICS Craigmore was founded by Forbes Elworthy and Mark Cox in 2009 and is fully focused on agricultural land investments in New Zealand. Craigmore is based in Christchurch (New GP Craigmore Permanent Crop Zealand) with a satellite in London (UK). Limited Partnership Structure Closed-end for 10 years With the investment in Craigmore, the Private Markets Fund will gain access to the attractive Focus Agricultural land in New Zealand (permanent crops) New Zealand agricultural market for permanent crops. Craigmore aims to invest alongside Fund size NZD 169 m some of the leading growers, packers, processors and exporters of permanent crops in New

More info www.craigmore.com Zealand. The focus is on permanent crops and especially kiwis, apples and wine grapes. Given the seasonal effects, New Zealand mainly competes with other southern-hemisphere countries like Chile, South Africa and Argentina.

Update Q3 Craigmore completed the acquisition of 137 hectares of grassland on the North Island, of which 70 hectares will be converted into a kiwi orchard and the remaining land (which is not suitable for growing crops) will be planted with native trees and shrubs. In addition, four small kiwi orchards (a total of 14 hectares) were added to the portfolio.

In addition, Craigmore is developing other kiwi and apple orchards for which various activities take place. The price that is received this year for kiwis exceeds the expectations and the export volumes of Kiwi Gold are increasing.

The current portfolio has a relatively high weighting for kiwis. Kempen has a seat on the advisory board of the fund where the remaining investment pipeline has been discussed. This calls for a further spread to crops for the remaining investment budget.

Kerikeri, kiwi orchard Hawke’s Bay, development apple orchard

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FOLIUM CAPITAL

CHARACTERISTICS The Private Markets Fund has acquired a stake in the Folium Agriculture Fund I through a secondary transaction. Folium Capital is set up in 2015 by Alvaro Aguirre, Oliver Grantham and Andy Wiltshire, who were previously responsible for Natural Resources investments at GP Folium Agriculture Fund I Harvard Management Company. Structure Closed-end

Focus Agricultural land worldwide The fund focuses on permanent crops with a significant development component. The (permanent crops) Fund size USD 335 m portfolio offers exposure to permanent crops in Chile (around 50%), Australia, Portugal, Spain and the US, with almonds and avocados as dominant crops. With an investment in such permanent crops, it’s possible to respond to health trends that are responsible for a strong More info www.foliumcapital.com growth in the demand for these crops.

Update Q3 In the third quarter the purchase of this fund interest was completed through a secondary transaction. The fund assets are fully committed to 6 projects: Chili (south): a number of objects with a focus on crops that can withstand frost in the winter. Investments are made in a mix of lower risk-return crops (hazelnuts, walnuts) and higher risk-return crops (cherries and blueberries, which are more perishable). Chili (central): a number of objects in a warmer part of Chile where less frost-resistant crops are grown. Avocados and citrus fruits (tangerines) are mainly planted here for export: the avocados to Europe and the tangerines to the United States. Australia (New South Wales & Victoria): a number of objects on the border of New South Wales and Victoria. The focus here is primarily on the conversion of grassland to almond orchards. The almonds are mainly exported to Asia, Europe and the Middle East. Australia (Western Australia): this concerns the conversion of vegetable cropping to the cultivation of avocados. The vast majority of the avocado production in Australia is intended for domestic consumption. Spain/Portugal: three objects in Portugal and Spain where almond orchards are being developed. The almonds are intended for export within the EU. United States: an object in the Paso Robles wine region with the focus on grapes intended for premium Californian wines (USD 10-20 per bottle). Folium sees limited additional supply in Napa and Sonoma due to land and water restrictions and believes that the Paso Robles wine region can benefit from this.

Cherry orchard in Chili Almond trees will be planted In Portugal

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RMS

CHARACTERISTICS The Private Markets Fund has subscribed to the RMS Evergreen US Forestland Fund. This fund focuses on sustainable forestry in the southeast of the United States, the largest commercial forestry region worldwide. RMS has a long history in the region and it has managed the forests GP RMS Evergreen US Forestland Fund in its portfolio since 2006, when it was transferred from International Paper. RMS is an Structure Open-end organisation that is largely owned by its own employees and that focuses entirely on forestry. Focus Forestry US The RMS approach is characterised by vertical integration, which means that the operational Fund size USD 714 m NAV USD 954 m GAV management is carried out by RMS itself. The organisation has about 170 employees. This complete alignment of interests has in the past resulted in a stronger performance than that More info www.resourcemgt.com of many of its competitors. The entire portfolio of the fund is certified with an SFI sustainability label.

Update Q3 There were no significant developments during the third quarter. Operational RMS performed above budget. The export market for timber products does suffer from the trade dispute between China and the US. The half-yearly valuations don’t cause a significant revaluation of the portfolio. In addition to regular sales to private individuals, there was one somewhat larger sale of a property in Alabama to Conservation Forestry.

Kempen also attended the annual meeting of the fund in Mobile, AL. In addition, several local objects were visited and there were talks with local RMS staff .

Forest in Alabama Florida, forestry combined with conservation easement, bringing the native longleaf pine back into the landscape

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CLARION GABLES

CHARACTERISTICS The Private Markets Fund has registered with the Clarion Gables Multifamily Trust. This fund is managed by a rather unusual partnership between a renowned manager of American Real Estate (Clarion) and a real-estate developer (Gables) that manages one of the top real-estate GP Clarion Gables Multifamily Trust development brands in the southern United States. Gables is 100% owned by the fund and Structure Open-end therefore the interests of staff and fund are fully aligned. Focus Multifamily apartments US The portfolio consists of apartment complexes in high-quality residential areas, especially in Fund size USD 2.2 billion NAV USD 4.3 billion GAV the southern states of the US. Gables mainly invests in so-called second-tier cities with more than one million inhabitants. The south has a higher job growth and better affordability of More info www.gables.com homes (based on the rent-to-income ratio). Gables develops homes for the higher rental segment. The complexes fit well with the trend developments around the high-quality urban

lifestyle.

Update Q3 No new investments or divestments have taken place in the past quarter. The fund once again managed to attract new investors. Part of the capital was used to refinance borrowed capital, as a result of which the effective leverage slightly decreased again.

Clarion Gables remains positive about the housing market in the southern states of the US. There are currently ten projects in development that were slightly delayed previously, but are now developing further according to plan. The fund continues to perform within the target return range.

Gables Seaport, Boston, development of 307 Gables Ashley, Atlanta Buckhead Village, apartments project completed in 2018

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GSA CORAL

CHARACTERISTICS The Private Markets Fund has subscribed to GSA Coral. This fund is managed by the Global Student Accommodation. GSA was founded in 2014 by a senior management team that was also involved in the start of successful players Unite and Urbanest, respectively market GP GSA Coral leaders in student housing in the UK and Australia. Since then, GSA has grown into one of the Structure Open-end largest global players in student housing, active in both mature and growing markets. Focus Student housing Europa and Development, maintenance and management of the real estate portfolio is done in-house. Asia Pacific Fund size GBP 343 m GSA invests through its flagship fund, GSA Coral, together with a number of large institutional capital partners. Through this unique structure, an investor in the GSA Coral fund gains More info www.gsa-gp.com superior access and diversification to the world’s best diversified student housing portfolio.

The student housing sector is interesting due to a growing international student population, student mobility and range of international courses. As rooms in cities are limited, the need for student housing is increasing and growth markets in Continental Europe and Asia/Pacific are expected to follow US and UK trends.

Update Q3 GSA Coral is currently active in six countries. The largest positions have been taken in the UK, Ireland, Spain and Australia. In addition, GSA Coral has now built up eight student housing complexes in Germany and it has opened the first student housing complex in Japan. The portfolio has an exposure to more than 21,000 beds in total (including the development pipeline).

GSA was very active in the past quarter. Three projects were delivered in England, respectively in Bournemouth and Exeter, together accounting for 1260 beds. In addition, two projects were delivered in Barcelona (835 beds) and two projects in Dublin (746 beds). If we look at the entire GSA portfolio, the rooms also seem to be occupied for the coming semester: GSA is ahead of budget and last year’s occupancy rate. Final figures are still to come as in some countries there are bookings until the end of October. After successful deliveries this summer, GSA is once again focusing on complementing the project portfolio that includes potential investments in England, Germany and Japan.

Free room in student complex Mitte Wedding, Student complex in Exeter, opening in summer Berlin 2019

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MANAGEMENT EN ADMINISTRATION Fund structure Luxembourg SICAV Reserved Alternative Investment Fund (RAIF) Management company Kempen Capital Management N.V. (AIFM) Management team Sven Smeets, Richard Jacobs, Marvin de Jong, Edzard Potgieser, Bram Bikker Administrator/depositary J.P. Morgan Bank Luxembourg S.A. Auditor PricewaterhouseCoopers Legal advisor Elvinger, Hoss & Prussen Eligible for Professional and/or well-informed investors only

SUBSCRIPTIONS AND REDEMPTIONS Subscriptions Quarterly, 10 business days’ notice before quarter end Redemptions After a 3-year lock-up period, quarterly liquidity on best-effort basis (90 days’ notice) Minimum investment € 125,000 Subscription charge None Redemption charge None ISIN Code FC EUR Kempen Private Markets Fund, Class FC EUR: LU1789511141 ISIN Code FC GBP Kempen Private Markets Fund, Class FC GBP: LU1789511224 ISIN Code B EUR Kempen Private Markets Fund, Class B EUR LU1789510929 ISIN Code D EUR Kempen Private Markets Fund, Class D EUR LU1789511497

FEES AND EXPENSES Management fee 0.55% p.y.* (>10 million commitment) 0.80% p.y. ** (<10 million commitment) Taxe d’Abonnement 0.01% Service fee 0.17% Performance fee None

* For investors who have committed to an amount in excess of EUR 10 million before March 15, 2019, a management fee of 0.40% per year applies for the period ending May 2, 2023. ** For investors who have committed before March 15, 2019, a management fee of 0.55% per year applies for the period ending May 2, 2023.

CONTACT [email protected]

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DISCLAIMER

Kempen Private Markets Fund (the Sub-Fund) is a sub-fund of the Kempen Alternative Markets Fund (the ‘Fund’), which is based in Luxembourg. Kempen Capital Management N.V. (KCM) is the manager of the Fund. KCM has a license as a manager and is supervised by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of KCM at the AFM. The shares of the Sub-Fund are admitted for (public) offer in the Netherlands, the UK, France and Switzerland. This information does not provide an adequate basis for an investment decision. Therefore, read the Key Investor Information Document (for the Netherlands only) and the prospectus. These are available via the KCM website (www.kempen.nl).

The Sub-Fund may hold positions in the financial instruments specified in this document and may carry out purchase and sale transactions herein as it deems appropriate. The views included herein may be subject to change without further notice. This document contains no investment advice, no investment recommendation, no research, nor an invitation to buy or sell any financial instrument, and may therefore not be interpreted as such. This document is based on information that we consider to be reliable, but KCM gives no guarantee nor is it liable for the accuracy of the information contained herein.

This document has been prepared by the fund managers of Kempen Private Markets Fund, managed by KCM. The Sub- Fund is currently holding positions in the financial instruments listed in this document. As an investment fund manager (‘asset manager’), KCM can build up positions in financial instruments issued by the companies/funds mentioned in this document and can carry out buying and selling transactions at any time it deems appropriate.

This document is only provided for information and does not provide sufficient information to enable you to make an investment decision. This document contains no investment advice, no investment recommendation, no research, nor an invitation to buy or sell any financial instrument, and may therefore not be interpreted as such.

The vision contained herein is our vision as of the date of this document and this may be subject to change without notice. KCM has no obligation to keep the content of this document up to date. This document is based on information that we consider to be reliable, but KCM gives no guarantee nor is it liable for the accuracy of the information contained herein. This document has been prepared independently of the companies/funds mentioned herein.